Greektown Merchants United on Vouchers

Greektown Merchants United on Vouchers

Greektown, Detroit - Malista visited the Cyprus Taverna for lunch and while enjoying a fabulous spinach feta salad was informed that there was good news on the Casino Voucher Issue. Management advised that Greektown restaurant owners presently unable to participate in the Casino Voucher program would be getting a fair shake and hopes were high that all would be reinstated to the program shortly. Owners are optimistic that previous issues have been resolved and as soon as required applications are submitted and reviewed by the Gaming Board, they should be back to normal. The owner of the Cyprus Taverna advises that the break through was largely a result of the restaurants approaching the problem together, through the Greektown Merchants Association. "It has had a big impact on business, we were trying to fight alone, and it was just too big. Once we joined together, we began to make progress."

We have attached a copy of the recent article, which appeared on June 30, 2006 in the Detroit News. (http://www.detnews.com/apps/pbcs.dll/article?AID=/20060630/BIZ/606300399) Malista is pleased that press coverage by the News and Detroit Metro Times kept the issue alive while the merchants worked out a plan to resolve the problem. It is evident that strength in numbers prevailed and it is refreshing to see this group of competitors rally to resolve this common issue. Greektown offers local area Greek-Americans a center and keeps Hellenic cuisine and culture alive. Make sure that you visit Greektown soon and see the changes and improvements to the area. Greektown is alive and well and waiting to serve you. The warm atmosphere, is uplifting, the sound of Greek music filling the streets is inviting and reassures us all that our Greek culture and heritage will not be overlooked.

Malista!

Greektown restaurants get vouchers
Casino's food coupon program accepts eateries that couldn't pay fees or were originally denied.
Joel J. Smith / The Detroit News
DETROIT -- Greektown's struggling restaurants can participate in Greektown Casino's annual food voucher program without having to pay costly application fees or undergo extensive scrutiny, the Michigan Gaming Control Board decided Thursday.
The fees and review process had prevented eight restaurants from sharing the $8.7 million in food vouchers the casino hands out to its best customers each year. Some owners contended they were in jeopardy of closing their eateries without the casino-generated business.
"We're very, very pleased," said Steve Georgiou, president of the Greektown Merchants Association and owner of Olympia restaurant. "This has been a long time coming. Now all of us should be qualified for the exemption. Let's go forward from here."
Business at Georgiou's restaurant has dropped 80 percent since the gaming board imposed a rule requiring restaurants earning more than $200,000 a year in vouchers to have a supplier's license. He said he applied for the license, but was turned down because of a previous unpaid tax problem.
Like Georgiou, other restaurant owners contended the gaming board had either rejected their efforts to obtain supplier licenses to participate in the food voucher program or the applications fees were unaffordable, costing as much as $30,000.
In a special meeting Wednesday, the board unveiled several changes. Restaurant owners must simply submit an application for an exemption to a supplier's license. If approved, they must adhere to the following:
· Vouchers cannot be used to purchase liquor or converted into cash.
· Vendors must not charge the casino for unused portions of vouchers.
· Restaurants must keep detailed records of all voucher transactions.
· Restaurants must allow the gaming board to inspect accounting records.
Applications can be submitted beginning Wednesday.
"If they fill out the paperwork correctly and cooperate with us in the application, they will qualify," said Dan Gustafson, executive director of the gaming board. "If they give us a hard time about seeing their comp records, they risk losing their exemptions."
Olympia, like other Greektown restaurants, had been forced to lay off workers. Georgiou said the other struggling restaurants were Cyprus Taverna, Fishbone's, Laikon, Monroe Street Cafe, New Hellas Cafe, Pegasus Taverna and Plaka Cafe.
"We'll put in our application as soon as we can on July 5 and then begin hiring back our employees," Georgiou said. "It was inappropriate for people who have been in business for 20, 30, 40 or 50 years to suddenly lose their business. The little guys wouldn't have been able to stay open and I'm one of the little guys."
Mike Adkins, a Lansing attorney representing the Greektown Merchants Association, said he was glad the issue was resolved.
"Now all these restaurants will be open for business. They now will have a fair fight in a marketplace that got turned upside down."
You can reach Joel J. Smith at (313) 222-2556 or jsmith@detnews.com.